Market Radar India: Premium Portfolios and Academic Frontiers

The latest developments in the Indian real estate market this week

February 17, 2026Real Estate

Key Takeaways

Despite a volume dip, homes over INR 10 million grew 6% and now dominate 63% of the market, fueled by a "multiplier effect" where record office leasing creates a structural need for new housing.
India faces a USD 100 billion academic real estate opportunity to add 25 million university seats as global institutions prepare to enter the market under new reforms.
The government is planning 50 new airports and studying the easing of building height curbs - a move that could unlock massive vertical development in major metros like Mumbai and Hyderabad.

The Macro View

India's residential sector is navigating a strategic pivot toward premiumisation. While total sales volume saw an 11% year-on-year decline to 270,323 units in 2025, the demand for luxury remains resilient.

Sales of apartments priced above INR 1 crore grew by 6%, now capturing 63% of the annual market share compared to 53% in 2024. This quality over quantity trend is bolstered by robust price appreciation, with cities like Chennai, Bangalore, and Delhi NCR leading with 13% annual price growth.

Institutional confidence remains steady, with the residential sector attracting USD 2.1 billion in investment during 2025. Notably, equity investments now account for 44% of this capital, marking a departure from historical debt-heavy patterns.

In parallel, the Global Capability Centre (GCC) boom is deepening market depth in non-traditional hubs; Kolkata recorded a staggering 239% rise in GCC leasing volume in 2025, driven by IT and professional services.

This commercial surge acts as a direct upstream generator for housing; industry data suggests a multiplier effect where every 1,000 square feet of new office space creates 8-10 jobs, subsequently generating demand for 5-6 new residential households.

Trend Spotlight

The USD 100 Billion Learning Bet

A third cycle of real estate is emerging, anchored not by corporations or families, but by students. Analysts estimate a USD 100 billion academic infrastructure opportunity over the next decade, requiring 2.7 billion square feet of space to accommodate 25 million additional higher-education seats.

This shift is fueled by the National Education Policy 2020 and new regulations allowing Foreign Higher Educational Institutions to establish independent Indian campuses. Global universities including Southampton, Deakin, and Wollongong have already commenced operations.

Infrastructure & Industry Tailwinds

Aviation Expansion

The government plans to add 50 new airports in the next five years. Crucially, a study with the ICAO (International Civil Aviation Organisation) is underway to potentially ease building height restrictions around airports in metros like Mumbai and Hyderabad, which could unlock significant vertical real estate potential.

Hospitality Surge

The hotel industry is experiencing a multi-year boom driven by "AI fever," trade delegations, and spiritual tourism. Major players such as Indian Hotels are doubling their room capacity to 32,300 keys to meet demand that is currently outstripping supply.

Logistics & Finance

Global giants are doubling down on India’s growth. Goldman Sachs injected USD 500 million into its Indian franchise, vaulting to fourth in equity offerings. Meanwhile, Germany’s Bertelsmann acquired a majority stake in the logistics platform Lets Transport, targeting India's USD 14 billion logistics market.

Look out for a new edition of the GRI Institute's Market Radar India next week!